Debt Termination/Elimination Programs

What is the name of your state? Oregon

Are debt elimination programs that terminate or cancel out your credit cards, school loans, mortgage, etc., legal? I have been researching these types of programs on the internet, and it seems that they are too good to be true. The programs claim that banks are swindling people out of money because when a bank receives a promissory note from you, they deposit the promissory note into an account as money without your knowledge, sell it to an investor, use that money to fund you a check, and then expect you to pay them money plus interest. Basically, they are not using their own funds at all, and so they are making money off of the borrower while the borrower falls farther into debt. What is your legal view on this issue?

Thank you.

[bigun]

Well, here's a glowing testimonial from another site. These things are nothing but scams.


Regarding the debt termination program we have been discussing, here is a posting from a group that is complosed of people discussing the Gliha due process program. Messages like this come in many times a day from people telling their tales of woe.


quote:
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It was I that posted the message about the cival suit. I wanted to thank every one for their input and help. I just can't believe that first they charge off the debt and I have a copy of my credit report showing this and now they want to bring me into a cival court for something that if I were to try and collect from someone I had lent money to I would have to go to small claims court. How can they do this after they have written this off as a bad debt? Isn't that double dipping or something? I just don't get it. Would it be to my best interest to call them and plead my case with the lack of funds?

Some one told me that there is a statute of limitations on a debt, is there? I also want to know what will happen if I just do nothing, like not even show up? What if they get a judgement against me, how long dose it last? Can they attach my checking account? How dose that work? Dose the attachment just sit there until there is enough money to cover it or do they take out in little bits at a time or what? What about a small lot of unimproved land that I just bought?
Can they attach that? God I hate the jerk that sold me on that Due Process person. I wish he was in front of every judge out there getting his butt slapped around. I'm having a hard time with that guy also. He took our money and then ran off with it leaving us in the dust to fin for ourselves. I paid him for a total of 8 hours of legal aid help and I maybe got 1 hour of it.

Thanks again for your help.

John W.

Thank you for replying to my post. I took a look at the Gliha Due Process website, and it is identical to another one that I looked at that seemed very skeptical. These 2 websites are different than some of the other ones that I have looked at though. Is it at all possible that some could be scams and others are legit? Some of them do all of the work for you and have you sign a limited power of attorney. It seems that some are more thorough and professional than others. What do you think?

[bigun]

I think, you're going to get screwed and, they won't even buy you dinner first!

Do you happen to have any more messages for me to read? I would be very interested in hearing about others' experiences so I can make a very wise and informed decision. I agree with you about the possibility of getting screwed, so in order for me to make the best decision I would appreciate any other testimonials. Thank you.

[JETX]

I really have no opinion on these 'debt termination/elimination' sites other than the simple fact that they are scams!!

Your own post seems to offer information from them that they apparently use to establish their credibility...
"The programs claim that banks are swindling people out of money because when a bank receives a promissory note from you, they deposit the promissory note into an account as money without your knowledge, sell it to an investor, use that money to fund you a check, and then expect you to pay them money plus interest."

Of course what they are claiming is true... and very common and accepted business practice (not improper at all).
Banks are in the business of 'turning money'.

To understand this, you have to understand how the 'banking system' operates. The banking regulators require that EVERY bank have a certain percentage of assets to cover their debts. This came about as a result of the depression and the run on the banks, forcing them into insolvency. So, lets say that the banking regulators (FDIC or FedReserve, etc.) require a bank to have 20% of their total value in liquid assets. This bank then loans you $100,000 for 3 years at 10% per year (total value of your note is about $133,500.00. They then take that note and use it to qualify as a part of their 20% liquidity requirement by depositing that note with the Federal Reserve. This then frees up $133,000 of 'regular' money that they can then loan out again. The banks business is to loan out money and earn interest on that loan. This is not illegal or deceptive.

The sites you are evaluating are taking a little known common practice and using it to imply that something 'wrong' is being done against you when it simply isn't. And if they are going to mislead you about that with absolutely NONE of your money in their pockets, what lies and deception do you think they will use when they actually HAVE your money???

[HomeGuru]

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